Most Americans Can’t Afford to be Disabed
Dec 15, 2011
Jamie Fleischner

Jamie Fleischner

15 Dec, 2011

Retirement Protection and American Savings Patterns

  •         A new study that surveyed 1,900 Americans found:

    • 50% of Americans said they “certainly would not” or “probably would not” be able to come up with $2,000 in the event of an unanticipated event, such as an unexpected medical bill.  
    • The majority said they would have to rely on more than one method to come up with the emergency funds.
      • 60% said they would dip into savings
      • 34% said they would have to ask family and friends for help
      • 29% said they would have to resort to credit cards, a home equity line of credit, reverse mortgage or unsecured loan
        – Lusardi, Annamaria, Daniel Schneider, and Peter Tufano. “Financially Fragile Households: Evidence and Implications.” The National Bureau of Economic Research. Bulletin on Aging and Health, May 2011. Web. <>.
  • In 2007, the median income of households that include any working-age people with disabilities in the U.S. was $38,400.
    – U.S. Census Bureau, American Community Survey, 2007
  • Over 70% of working Americans do not have enough savings to meet short-term emergencies.
    – National Investment Watch Survey, A.G. Edwards Inc., 2004
  • Over 50% of the workforce has no private pension coverage and a third have no retirement savings.
    – Social Security Administration, Fact Sheet 2007
  • 71% of American employees live from paycheck to paycheck.
    – American Payroll Association, “Getting Paid in America” Survey, 2008
  • Only 40% of adult Americans have separate emergency savings funds.
    – National survey commissioned by the Consumer Federation of America (CFA) and carried out by Opinion Research Corporation, February 2007
  • More than 35% of workers with 401(k) or IRA plans have not thought about or don’t know what would happen to their contributions if they were unable to earn an income for a period of time.
    – Council for Disability Awareness, 2007 Disability Survey

Related Posts

How To File a Disability Insurance Claim

How To File a Disability Insurance Claim

After applying for individual disability insurance and paying premiums over time, a lot of people ask, "how do I file a disability insurance claim?" The first thing to think about is the definition of disability on your policy. This will determine eligibility for a...

We’re here to help

Getting the right disability insurance can be downright confusing. At Set For Life, we’ll help you understand the options and work with you to select just the right product for you and your family. These articles will help you understand some of the complexities involved, but we’re happy to walk you through it! If you’re ready to get set, reach out for a quote today!